How to Calculate Pivot Points

How to Calculate Pivot Points
There are several different methods for calculating pivot points, the most common of which is the five-point system. This system uses the previous day's high, low and close, along with two support levels and two resistance levels (totaling five price points) to derive a pivot point. The equations are as follows:

    R2 = P + (H - L) = P + (R1 - S1)
    R1 = (P x 2) - L
    P = (H + L + C) / 3
    S1 = (P x 2) - H
    S2 = P - (H - L) = P - (R1 - S1)

Here, "S" represents the support levels, "R" the resistance levels and "P" the pivot point. High, low and close are represented by the "H", "L" and "C" respectively.